AUD/USD trims tepid recovery gains

A fresh bout of greenback buying interest seems to have emerged in the past hour, with the AUD/USD pair trimming tepid recovery gains to currently trade with only marginal gains around 0.7635 region. 

Thursday's comments from Federal Reserve New York President William Dudley has revived hopes of an eventual Fed rate-hike action later this year and continues to underpin the greenback. This coupled with rising speculations of possible further RBA monetary easing is weighing on the higher-yielding currency, Aussie. 

Moreover, intense selling pressure around the EUR/USD major is further contributing to the bullish sentiment surrounding the overall US Dollar Index and attracting fresh selling pressure around the major. 

With an empty US economic docket, investors expectations over timing of next Fed rate-hike decision and broader sentiment surrounding the US Dollar would act as key drivers of the pair's movement on Friday.

Technical outlook

Immediate downside support is pegged near session low around 0.7620 below which the pair seems vulnerable to break through 0.7600 handle and aim towards testing 0.7585-75 strong horizontal support area. On the upside, 0.7645-50 remains immediate barrier, which if cleared might trigger a tepid short-covering bounce towards 0.7690-0.7700 strong resistance.